HONG KONG, Aug. 8, 2016 /CNW/ - St. Augustine Gold and
Copper Limited (TSX: SAU) ("St. Augustine" or the "Company")
today announced that the Mines and Geosciences Bureau (MGB) of the
Philippine Government has approved the renewal of the Mineral
Production Sharing Agreement (MPSA) for the King-king Copper-Gold
Project located in Mindanao, Republic of the Philippines. The renewal is for a period
of 25 years, and was awarded to St. Augustine's joint venture
partner, Nationwide Development Corporation (NADECOR).
"The successful renewal of the MPSA represents another milestone
in our ongoing efforts to advance and de-risk the King-king
Project," commented St. Augustine Gold and Copper Ltd. President
and CEO Paolo A. Villar. "With
all major mine permits approved, the MPSA renewal now paves the way
for the next phase of King-king's development. We look
forward to working with NADECOR and local stakeholders to advancing
King-king's progress."
The MPSA is an agreement under which the Philippine Government
grants an exclusive right to conduct mining activities within the
contract area and the Government receives a share of the gross
revenues of the mine operations. St. Augustine through its
joint venture partner, NADECOR, will provide the necessary
financing, technology, management and personnel for King-King's
development, construction and operation.
With the earlier approval of the Declaration of Mining Project
Feasibility (DMPF), NADECOR and SAGC will work cooperatively to
advance the Project to construction followed by operation of the
mine. Development of the King-king Project is expected to
have positive impacts for all project stakeholders and the
community at large, and has been designed to minimize any
environmental impact.
The King-king Copper-Gold Project
The King-king
Copper-Gold Project is located in Compostela Valley in the Philippines, and is expected to recover
3.16B lbs. of copper and 5.43M oz. of gold over its 25 year mine
and process life. According to the Preliminary Feasibility Study
that was released on September 18,
2013, and then filed on www.sedar.com on November 1, 2013, the Project has a pre-tax NPV
of $2.0 billion with an IRR of 24.8%.
The estimated mineral reserves amount to 617.9 million tonnes at
0.300% total copper and 0.395 g/t gold.
About St. Augustine
St. Augustine (SAU.T) is a
TSX-listed mining company focused on the development of the
King-king Copper-Gold Project. The Project is one of the largest
undeveloped copper-gold deposits in the world, and is listed as a
top three-priority mining project by the Philippine government.
NATIONAL INSTRUMENT 43-101 COMPLIANCE
Mr. James J.
Moore, P.E., a qualified person under National Instrument 43-101
("NI 43-101") has reviewed and approved the scientific, technical
and economic information contained in this news release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This announcement includes certain
"forward-looking statements" within the meaning of Canadian
securities legislation. All statements, other than statements
of historical fact included herein are forward-looking statements.
Forward-looking statements involve various risks and uncertainties
and are based on certain factors and assumptions. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could
cause actual results to differ materially from the Company's
expectations include uncertainties related to fluctuations in gold,
copper and other commodity prices and currency exchange rates;
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; uncertainties
relating to the completion of a bankable feasibility study;
uncertainty of estimates of capital and operating costs, recovery
rates production estimates and estimated economic return; the need
for cooperation of the Company's joint venture partner and
government agencies in the development of the Company's mineral
projects; the need to obtain further permits and additional
financing to develop the Company's mineral projects; the
possibility of delay in development programs or in construction
projects and uncertainty of meeting anticipated program milestones
for the Company's mineral projects; and other risks and
uncertainties disclosed under the heading "Risk Factors" in the
Annual Information Form dated March 30,
2016, and filed with Canadian securities regulatory
authorities on the SEDAR website at
www.sedar.com.
SOURCE St. Augustine Gold and Copper Limited